Domestic stock markets erase losses; Nifty and Sensex closed after climbing over 2%

Mumbai: The domestic stock markets on the last trading session of the week erased the losses after taking support from positive global cues that included an indication of strength in the labour market of the United States and positive sentiments in other Asian markets.
At the end of the trading on Friday, the Nifty 50 at the National Stock Exchange (NSE) ended at 23,907.25, rising 557.35 points, and the BSE Sensex was at 79,117.11, up by 1961.32 points.
Both Nifty and Sensex climbed over two per cent (2.39 per cent and 2.54 per cent, respectively)
On Friday morning, the stock markets opened with gains after the rally in other Asian stocks.
The top gainers on NSE were State Bank of India, Titan, Bajaj Finance, ITC, and TCS, while the stocks of Bajaj Auto were the losers.
All the sectoral indices on NSE traded in the green territory, except Media, during the trading day. The sectoral indices of IT witnessed a strength of 3.29 per cent, the realty sector jumped 3.17 per cent, while the PSU banks upped by 2.99 and FMCG, 2.27 per cent.
Among the many interesting developments in the markets, the stocks of Adani Group erased their losses and traded in green territory. On the previous trading session, the stocks of Adani Group suffered losses due to charges by US Department of Justice and the US Securities and Exchange Commission.
"Markets rallied from a significant level of support. Since the last two days, FPI positions were being built in the futures market; today that came into the cash markets too. This is more of a technical bounce from very deep oversold levels. No fundamental change per se, Ajay Bagga, banking and market expert, stated observing today's market.
Bagga added, overall, the positive global cues, positive Asia cues, and an extremely oversold market combined with this relief on the Adani front to contribute to this sharp rally today. It looks like a bottom may have been formed price-wise; time-wise we will have to wait and watch for now."
Shriram Subramanian, founder and MD, InGovern Research Services, stated that as expected, markets are trying to pull back as the implications of the Adani Group indictment sink in. Investors are seeking to buy stocks of good companies that are available at reasonable valuations. IT and pharma sectors continue to attract buying interest, he added.
"The buying momentum was noticed at the 200-day EMA on the daily chart and the 50-day EMA on the weekly chart, while the RSI dipped below 30, pushing the index into the oversold range. This movement triggered value buying, particularly in large-cap quality stocks," said VLA Ambala, co-founder of Stock Market Today, observing the market.